The monthly tax return is due on the 20th of the month following the preceding reporting month. The quarterly tax return is due on the 20th of the month following the end of the preceding quarter and the annual tax return is due on January 20th following the end of the preceding year. The return is delinquent if not received by the City before the close of business on the last business day of the month. Please note that postmarks are not proof of timely filing.

Do I file a tax return if I’ve had no sales (income) for the period?

Yes, simply check the box on your return for “No business activity,” sign, date and submit the return.

Can I deduct my business expenses from gross revenue?

No, business expenses are generally not deductible.

Can I show my total deductions on the front of the return only?

No, all deductions must be shown in detail on the back of your return for each business
activity on the front of your return. Please use the boxes on the back of the return for the most commonly taken deductions.

What deductions can I take?

The allowable deductions for each business activity are shown on the Tax Return. For addition assistance, please contact the Tax & License Division at 623-930-3190.

How do I claim a deduction that isn’t shown on the back of the return?

If you have an allowable deduction from the Tax Return
Instruction Sheet that is not on your return, show the amount of the deduction(s) on the line “75-79” deduction on the back of the return and provide the explanation for the allowed deduction code(s) with any details. This can be on the return form or an attachment.

Where do I pay my taxes?

File your tax return and remit payment by mail in the envelope provided or

When you are first issued a license, you will be required to report monthly. After at least
six returns have been filed, you can request to be changed to quarterly or calendar annual
filing. The requirements for filing are:

Please note that if your income level increases, you are responsible for notifying the City to change your
filing to a more frequent filing method.

How do I correct an error on a previously filed tax return?

Make a photocopy of your copy of the return (both sides), and using a RED pen:
-Write “AMENDED” on the photocopy.
-Cross through all incorrect amounts to be amended.
-Write the correct amounts next to the incorrect amounts.

Complete your return as normal, send it in with payment for the tax and we will compute
any interest and penalty due. If you pay the entire tax amount, it will not cost extra for us to
bill you later for the interest and penalty, as we do not charge interest on penalty. A late
return is subject to a penalty of 5% per month (or part of a month) until filed. The late tax balance is subject to a one-time 10% penalty. Total penalties cannot exceed 25% of the tax due.

A delinquent tax balance is also subject to interest on the balance at the end of each month from the month the tax becomes delinquent. Interest for months prior to October 2005 is charged at 1%; as of October 2005, a variable interest rate is charged at the same rate as the State, as shown on the Arizona Department of Revenue website.

What is Use Tax?

Use Tax applies to items that were purchased or leased without paying sales tax for use in
the business, typically from out-of-state vendors. These items become taxable when they
are purchased or removed from inventory for use. Use Tax does not apply to purchases or
leases of items that are resold or released in the normal course of business.